POST CREEK/HALCYON OVERVIEW

The Post Creek and Halcyon projects are located 35 km east of Sudbury in Norman, Parkin, Alymer and Rathburn townships (Figure 1). The Post Creek property consists of 39 unpatented mining claims covering an area of 912 hectares and the Halcyon property consists of 53 unpatented mining claim units totalling 864 hectares. Both properties are contiguous and readily accessible by paved, all-weather gravel, and bush roads. These two properties are strategically located approximately 2 km northeast of the past producing Podolsky Mine owned by KGHM International Ltd., a subsidiary of KGHM Polska Miedz S.A. The Podolsky 2000 and North deposits are both hosted within the Whistle Offset Dyke, which begins at the Sudbury Igneous Complex (past producing Whistle open pit mine) and trends northeast. It has been traced to the northern extent of the Podolsky Mine property, which is contiguous to the northeast with the Post Creek Property.

Offset Dyke and Footwall deposits account for a significant portion of all the ore mined in the Sudbury Mining Camp and continue to be significant and favourable exploration targets. Nickel-copper-PGE deposits associated with Offset Dykes include Vale’s long lived North and South Mines hosted by the Copper Cliff Offset and Totten Mine on the Worthington Offset and KGHM’s past-producing Podolsky Mine on the Whistle Offset. Footwall deposits are high grade copper-nickel-PGE deposits commonly associated with large Sudbury Breccia zones and include Vale’s McCreedy East Mine, Glencore’s Deep Copper and Nickel Rim Mines, and KGHM’s Morrison Mine.

Work completed to date by North American Nickel has identified a new Quartz Diorite dyke as well as a significant Sudbury Breccia belt on the Post Creek Property. The presence of these lithologies indicates the significant exploration potential for the property to host both Offset and Footwall deposits. North American Nickel plans to further define the extents of Quartz Diorite and Sudbury Breccia on the property and to carry out a detailed compilation and review of the Company’s exploration data in order to develop targets within these two favourable lithologies.

The Company is open to working with a strategic JV partner in order to more quickly advance exploration on the Sudbury properties.

GEOLOGY & MINERALIZATION

The Post Creek and Halcyon properties are situated in the northeastern part of the Sudbury Structure, approximately 2.5km northeast of the Sudbury Igneous Complex (SIC) Sublayer-Footwall contact. The SIC is considered to be a product of a meteorite impact that occurred at 1.85 Ga and represents a long established world class nickel sulphide district. Ni-Cu-PGE mineralization occurs in several settings including Sublayer, Offset Dyke and Footwall deposits.

The properties are underlain by Archean metavolcanic and granitic rocks and Proterozoic metasedimentary rocks which are locally cross-cut by Proterozoic diabase dykes. Quartz Diorite (QD) and Sudbury Breccia, which are important SIC-related lithologies known to host Ni-Cu-PGE deposits, have been identified by NAN on the Post Creek property. Although only minor amounts of disseminated and blebby sulphides have been identified thus far in these units, they both represent significant exploration targets.

The “CJ Quartz Diorite”, discovered by prospector Cecil Johnson in 2011, is located 3km NNE of KGHM’s Podolsky Deposit and appears to lie along a trend which is displaced from, but sub-parallel to, the strike of Whistle Offset (Figures 2 and 3). It is considered to be a new occurrence versus an extension of the Whistle Offset.

New occurrences of Sudbury Breccia were identified in outcrop and trenches in 2016 and define a belt of a least 300m by 300m in size. The breccia zone is located 2km NE of Podolsky Deposit and lies along an extension of the Whistle Offset trend (Figures 2 and 4).

Exploration and Results

NAN began exploration of the properties in 2010 and this work was primarily focussed on finding an extension of the Whistle Offset. The exploration program comprised outcrop stripping, washing and detailed mapping along with Beep Mat geophysical surveys to look for shallowly buried mineralization. Elevated EM responses were obtained and these areas were stripped of overburden using an excavator and washed using a Wajax pump. Exposed mineralization was sampled and assayed for Ni, Cu, Co Au, Pt and Pd. Anomalous metals values of up to 29 g/t Au, 18.7 g/t Ag and 15% copper were obtained in samples from the southern portion of the Post Creek property which lie along an extension of the Whistle Offset trend. Mobile Metal Ions soil geochemical surveys were also undertaken to follow-up results of historic airborne VTEM and ground IP and magnetic surveys.

In 2011, NAN conducted an extensive exploration program over the Post Creek and Halcyon properties. A complete review of the historical Namex Exploration Inc. data was completed as well as a reassessment of a 2003 helicopter-borne time domain electromagnetic survey. As a result of this compilation, a deep-looking ground InfiniTEM survey as well as a walking MAG VLF survey were carried out on the Post Creek property and identified a number of geophysical anomalies. Follow-up prospecting to investigate these anomalies resulted in the discovery of a new Quartz Diorite dyke in the north-central portion of the Post Creek property by local prospector, Cecil Johnson. Extensive trenching, sampling and geological mapping were carried out between July and November and, in late 2011, seven diamond drill holes totaling 1,533m were completed. The drilling intersected heavily disseminated to semi-massive pyrrhotite, pyrite and minor chalcopyrite hosted within large blocks of mafic volcanic rocks and within oxide and iron formation but did not return any significant values.

In 2015, NAN supported an NSERC funded research project headed up by Dr. G. Osinski (University of Western Ontario) which included an evaluation of the CJ Quartz Diorite and confirmed the identification of Quartz Diorite.

In April and May of 2016, ground traverses and prospecting were carried out on the Post Creek property. A number of new locations of interpreted Sudbury Breccia were identified and led to a subsequent trenching program in the southern portion of the property in the vicinity of historic IP anomalies. Trench mapping was completed in October and identified a significant belt of Sudbury Breccia which is at least 300m x 300m in size. Various samples were collected in 2016 for assay and thin section analysis.

ACTIVITY AND WORK PLANS

Receipt and compilation of assay and petrographic results from sampling completed in 2016 is on-going.

North American Nickel plans to further define the extents of Quartz Diorite and Sudbury Breccia on the property and to carry out a detailed compilation and review of the Company’s exploration data in order to develop targets within these two favourable lithologies.

The Company is open to working with a strategic JV partner in order to more quickly advance exploration on the Sudbury properties.

604.770.4334 1.866.816.0118
C/o Bennett Jones LLP Attn: Sander Grieve 3400 - One First Canadian Place, P.O. Box 130,
Toronto, Ontario, M5X 1A4